Public Costs of Inequity
Despite recent years of economic prosperity, the public still bears the cost of continuing to support individuals in our community who are not self-sufficient. For example, the City and County invest over $35 million annually on health care for low-income residents. The State of Texas reports annual expenditures in excess of $43 million for Food Stamps and TANF recipients in Travis County (1997-98). With careful investment in workforce development, recipients of these services can become self-sufficient, substantially reducing the demand for these and other services.
Estimates show that the racial and ethnic groups with lower than average employment and labor participation rates are composing an increasingly larger share of the Travis County population. Over time, the total Travis County racial/ethnic breakdown will approach the greater diversity found at the local school districts and the current birth records (see Figure 5 Graph Below). This move towards greater diversity is also supported by estimates that show 10% of the 1998 City of Austin population was born outside the United States, an increase from the 8.5% shown in the 1990 Census (Austin Task Force on Immigration Issues, Jul 1998).
Note: 1998 birth rates only represent a "snapshot" of the future demographics of Travis County. This indicator does not represent a comprehensive outlook because it doesn't include people who will move to Austin from other cities, states, and countries in the next few years.
Sources: U.S. Bureau of the Census, 1990 U.S. Census Data, C90STF3A database; CACI Marketing Systems, Sourcebook America 1998; Texas Education Agency, 1997-98 District Profiles; Texas Department of Health, 1998.
Current labor force needs can, in part, be met by providing carefully tailored training and education to Travis Countys "in-house" supply of potential workers. To ensure that the future local labor market is positive, our community must put time, money, and effort into developing our current underutilized workforce.
Issues of concern:
- Recent welfare laws are moving working-age individuals off of assistance with no safety nets
- Single parents being transitioned off TANF are in their prime working years (66% are between the ages of 21 and 40) and many have a high school diploma/GED (33%). Their main disadvantage, besides need for child care and transportation, is lack of work experience (63% have only 12 months or less of work history).
- Hispanic and African-Americans are over-represented in almost all of the disadvantaged groups. The trends in demographics show that the Hispanic population will eventually be equivalent to the size of the Anglo population.
- Following the trends in demographics, the portion of the Travis County workforce that has low skill levels and low education levels will increase over time.
Summary
The current vibrant Travis County area economy challenges employers to seek out workers in the community who might have been passed by when labor was plentiful. Historically, companies would locate to the Travis County area because of the availability of an educated workforce. Fast growth in the area economy has left companies labor needs exceeding the supply of qualified workers. In order for the Travis County area to continue its trend of increasing prosperity and economic vitality, employers, workers, and agencies need to partner together to increase the skills and education levels of the local, underutilized workforce. The current economy presents an opportunity for partnerships that will result in long-term betterment of the Travis County community; one with increased labor force participation and less economically disadvantaged children.
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